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Consumers ready to return to the shops

SALLY SARA: Well David Taylor joins me now for a look at today's business and finance. David, the latest reading on consumer sentiment shows that it's at its highest level for more than two years. What's going on?

DAVID TAYLOR: Sally, this is the Westpac Consumer Sentiment Index, and it's the fifth consecutive month the index has come in above 100. So the average is around about 100 and this reading is a solid 110.

So we're not seeing huge growth spurts, but 110 is considered very solid by economists. What's happening there? Well there's accumulation of several interest rate cuts since November 2011. Of course rises in equity markets, our local share market, the Australian local share market's up 10 per cent for the year, 20 per cent of its September 2011 lows and improved global economic prospects.

So we're looking at consumers saying in the index, it's time to buy a house and it's time to buy a car. So consumers are happier.

SALLY SARA: David, how did the share market perform today?

DAVID TAYLOR: It finished in negative territory, partly to do with a loss in the banks and retail stocks. And National Australia Bank's also indicated today that it's changing its tack. It's been recently offering low mortgage rates and doing what everybody else does, but now it's moving along with the Commonwealth Bank in making itself more high tech.

NAB says the changes are predicted to deliver NAB around $800 million in savings over the next five years. But elsewhere in the market, miners did try to do their best to lift the market, but it wasn't enough. The share market closed down around half a per cent to 5,104.

SALLY SARA: And the Australian dollar, David?

DAVID TAYLOR: The Australian Dollar's doing reasonably well. It's moved up from its lows around the 101 US cent mark. Over the last few days it's been trading above 102.5. It's now selling at about 103.2 US cents.